Debt relief- who should I use?
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Answer:
Correct me if I'm wrong but careone and freedom debt relief are two different types of programs. Careone is, I believe a Consumer Credit Counseling program, they negotiate your interest and freedom is a debt settlement company, that negotiates your entire balance.
Here's what you should be looking for.
First, determine how dire your situation really is. Any form of debt relief will affect your credit report but if your looking for a debt relief program, I'm guessing that your credits not all that hot anyway.
In a CCC, your accounts will appear on your credit report as managed by xyz company. This gives any future creditor a bit gun shy in extending any credit because you appear to be financially unsecure. It is a program that generally runs between 5 and 7 years and you will repay the entire amount of your debt PLUS interest.
With a debt settlement company, your credit will show late pays and charge offs. The programs here are normally about 3 years with some running as long as 5 years.on rare circumstances. You will repay between 40% and 60% of your total debt with your credit report showing the account as paid as agreed upon completion.
Shorter program time. Less total payout. Less damage to your credit report.
No matter which program you chose, concentrate about getting out of debt and do not worry much about your credit report. Get out of debt first. Damage control can be done afterwards.
I worked for a debt settlement company for a year. What they can do for you, you can do for yourself and save yourself a bunch of money.
Just get a copy of your credit report with all 3 credit bureaus on them. They will have the address and phone numbers of all your creditors so that you can contact them yourself. Call them up, be honest, and let them know your financial situation. Most companies would be willing to take off 75% of the bill if you pay it in full right when you call. If you do this though, make sure that they mail you some kind of receipt that shows that you paid it off, this way you can have that for your future if you ever want to buy a home, etc.
I did this not too long ago for myself on a couple of my accounts and it was no big deal, and the creditors were actually pretty nice about it.
Good luck!
I will tell you unconditionally who you should use. Are you ready? The answer is YOU. What can somebody else do for you that you cannot do yourself. You can telephone, you can reason, you can offer options and you can be obligated. Learn all you can, go to debt management sites (under my profile for the best one) and learn what it is about debt management. Write down a few principles and put them into practice. Its free then, you are not paying someone else to do what you can.
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